An ever-expanding catalogue of clinical research indicates omega 3 fatty acids are among the most important nutrients for human health. And as consumers place more emphasis on their long-term wellness, the market for a growing cast of marine-derived products has been primed for success.
 
Omega 3s: Big Fish in a Small Market
 
According to market research publisher Packaged Facts, Rockville, MD, global consumer spending on omega 3 food and beverage products, health and beauty care products—including nutritional supplements—and pet products could reach $13 billion by the end of 2011. And the industry is far from reaching its saturation point.
 
“Several factors combine to create a very positive growth environment for omega 3 products,” the report stated. “These include expanding medical, governmental and public awareness of omega 3 and its wide range of health benefits; continued consumer receptiveness to functional food and supplement products; positive mainstream and trade media reporting; and increased participation by major marketers.”
 
The global ingredient market for EPA and DHA omega 3s now exceeds $1.5 billion, or 85,000 metric tons of oils, according to Adam Ismail, executive director of the Global Organization for EPA and DHA Omega-3s (GOED), Salt Lake City, UT. “The sales of consumer products fortified with EPA and DHA is more difficult to estimate, but we think it is nearly a $19 billion market globally,” he added. “This number sounds very large, but it includes supplements, fortified foods, animal and pet foods, pharmaceuticals, personal care, infant formulas and even clinical nutrition products. Often times EPA and DHA are purely seen as a supplement or food ingredient, but the market is actually much larger. Pharmaceuticals account for about $1.5 billion of this today, but we expect this area to grow the fastest in the near future as more products come to market.”
 
Like most successful markets, the omega 3 segment and the broader marine nutraceuticals category has been built on a solid foundation of research. Science continues to drive the market forward, and the pace of research increases from year to year, according to Anthony Palmieri, market segment head, Infant Nutrition & Medical Foods, Human Nutrition & Health, North America, DSM Nutritional Products, Parsippany, NJ. “The large amount of compelling science in polyunsaturated fatty acids (PUFA) research is increasing consumer awareness. In 2010, there were close to 20,000 papers published and over 2000 clinical trials being conducted with PUFAs.”
 
In comparison, there were more than 11,000 papers published in 2004 and more than 1000 clinical trials conducted, he added, citing data from GOED. “Hence, science is driving consumer awareness in areas of cognition, cardiovascular health and anti-inflammatory health, to name a few.”
 
Baldur Hjaltason, sales director for Norway-based EPAX, agreed most of the research pertaining to omega 3s has focused on cardiovascular diseases, as well as infant nutrition and cognitive health. “More recent research has shown clinical benefits of omega 3 fatty acids against depression as well as treatment for trauma,” he added. “The most exciting news is our deeper understanding of how omega 3 fatty acids work through our genes.”
 
Harry Rice, vice president, Regulatory & Scientific Affairs, GOED, said the European Food Safety Authority (EFSA) has rendered more positive opinions for the long-chain omega 3 fatty acids EPA and DHA than any other nutrient. “Given the strict regulatory regime under which the evaluations are being conducted, this is a testament to their well-established benefits.”
 
In the U.S., while FDA approved a qualified heart health claim for EPA and DHA in 2004, the agency also concluded scientific evidence fell short of meeting the “significant scientific agreement” standard, which refers to the extent of agreement among qualified experts in the field.
 
“While quality cannot be measured by quantity alone,” Mr. Rice said, “GOED monitors the peer-reviewed, scientific literature and has found that the number of publications related to the benefits of EPA and DHA has more than doubled since the FDA chose to exercise its enforcement discretion for the qualified health claim. Many of those publications relate to the cardiovascular benefits of EPA and DHA and represent well designed and executed research.”
 
To “upgrade” the qualified health claim to reflect current science, Mr. Rice said there are two options: submit a notification of a health claim based on an authoritative statement of a scientific body or submit a petition for an authorized health claim.
 
Despite the science, Mr. Ismail noted a general trend in the past few years where efforts to restrict consumer access to EPA and DHA seem to be increasing. “In almost every case it is because of a poor understanding of the science behind omega 3s. There are moves afoot to establish upper limits that are lower than the levels required to obtain some of the benefits of omega 3s, but none of these upper limits are based on any scientific evidence of a safety concern at the dosages mentioned.”
 
GOED continues to educate consumers around the world while advocating for recommended intakes to be established. “The potential public healthcare savings and improvements to mortality rates by only modestly increasing omega 3 intakes is staggering, and yet we see efforts to restrict access to these vital nutrients and prevent consumers from knowing how much they need to reduce their risks.”
 
Nonetheless, information about health benefits has reached consumers through mainstream media outlets, resulting in improved public awareness, noted Laura Kelly, marketing manager, Croda Health Care, Edison, NJ. “This long awaited education is also informing the consumer that there are ways of obtaining your omega 3 other than eating two portions of oily fish a week, which is undesirable to many,” she said. “Fish oil supplements and foods and beverages enhanced with EPA and DHA are becoming more readily available.”
 
Into the Deep
 
It’s not just fish oil that’s making a splash in the marketplace, noted Sam Wright IV, CEO, The Wright Group, Crowley, LA. “We are in an age of new scientific discovery in human nutrition and marine nutraceuticals are playing a large role, as various algae, seaweed, krill, crustaceans and marine microorganisms are screened for biological activity. Cod liver oil as a vitamin A and D source actually kicked off the nutrition industry more than 100 years ago, and the work continues to the present day.”
 
An aging population under pressure from escalating healthcare costs, alongside the “endless cascade of positive science,” continues to drive growth, he added. “Consumers are taking a more proactive stance regarding their health, using the Internet to self-diagnose and self-treat real and perceived maladies. Demand growth for omega 3 has been running at 15-20% per year and this is expected to continue for quite some time. About 80% of this demand comes from fish oil currently, but we see the algal segment growing stronger in the future due to several new entrants in recent months.”
 
Mr. Wright also said there is a positive consumer view of products from the sea, which are “primordial in comparison to something that is synthesized, fermented or grown.”
 
The global appetite for omega 3 fatty acids is “seemingly insatiable,” according to Andrew Ayers, founder and CEO of Algae Biosciences Incorporated, Overgaard, AZ, which harvests algae for a wide range of products. The combination of pure aquifer brine water and plentiful Arizona sunlight creates perfect growing conditions for photosynthetic marine algae cultures, he said.
 
“AlgaeBio can grow multiple species from its source water. Some produce EPA; some produce DHA. As a result, AlgaeBio can create a custom omega 3 blend, depending on customers’ wishes—simply dialing in the EPA-DHA ratio to maximize the desired health benefits to consumers. Because AlgaeBio uses a photosynthetic process, the company not only extracts EPA and DHA, but various other elements, such as carotenoids, chlorophylls and vitamin E. This adds nutritional value for the consumer. These products also act as antioxidants for the omega 3s—giving the product a longer shelf-life.”
 
Mr. Ayers said his company will soon introduce a custom, high-purity blend of EPA and DHA for international customers in the nutraceuticals and food additive markets. He also noted that algae are the natural source of omega 3s in the food chain and represent a sustainable, efficient option for cultivating marine nutrients.
 
Efrat Kat, director, Marketing and Sales, Israel-based Algatechnologies Ltd., said microalgae contain many important nutrients found in animal products or in low concentrations in plant foods. “Astaxanthin produced from microalgae Haematococcus pluvialis is an extremely potent antioxidant and is recognized to be as much as 500 times more effective than vitamin E.”
 
Astaxanthin recently received a boost from “The Dr. Oz Show,” which offered a positive endorsement of this potent carotenoid, which has been shown to offer eye health, cardiovascular health and anti-inflammatory benefits, according to Ms. Kat. Other popular microalgae include spirulina, chlorella and dunaliella, she added.
 
Interestingly, Cyanotech Corporation, Kailua-Kona, HI, recently filed a New Dietary Ingredient (NDI) notice with FDA, which allows a 12 mg daily dosage of the company’s BioAstin natural astaxanthin.
 
In Japan, where the traditional diet incorporates many microalgae types, Algatechnologies’ AstaPure brand natural astaxanthin, which is Generally Recognized As Safe (GRAS) in the U.S., is commonly used in food and beverage products. “I believe that in the near future more focus will be given in the European and the U.S. markets to implementing microalgae and related products in the functional food category,” Ms. Kat said.
 
Also known for its anti-inflammatory properties, green-lipped, or green-shell mussel contains an abundance of vitamins and minerals, protein, omega 3s, glucosamine and chondroitin sulphate, according to Ben Winters, director, Aroma New Zealand, which offers GlycOmega-PLUS green-lipped mussel extract.
 
Most recently, this marine nutraceutical was clinically proven in a University of Queensland study to reduce joint pain and increase joint mobility in patients with osteoarthritis, Mr. Winters said. Further, Glyc-Omega-PLUS offers up to 50% more anti-inflammatory activity over the company’s green-lipped mussel powder. “Glyc-Omega-PLUS is cold-opened and mixed with an herbal antioxidant, giving excellent results for joint pain and increasing joint mobility in both people and pets.”
 
For the future, the company is installing a SCFE (super critical fluid extraction) unit, which will allow for the extraction of omega 3 fatty acids and phospholipids from a range of marine sources, such as green lipped mussel oil and krill oil, Mr. Winters noted.
 
Collagen has also demonstrated benefits for joints, as well as skin, hair and nails, said Gary Brunet, president, Vyse Gelatin Company, Schiller Park, IL. “With virtually no collagen ingested in our diet, consumers are looking for ways to supplement. In the last 15 years the use of collagen for joint care has increased dramatically. As we age, we stop making the amount of collagen our bodies need; our skin gets thinner and our joints get stiffer. Some believe that our bodies begin to consume the collagen we have left, leading to arthritis and other joint disorders.”
 
With an aging population—as well as movement away from animal byproducts and toward the use of non-mammalian, kosher and halal products—the supplement market for fish-derived collagen will stay strong, he predicted. “We believe there will be continued interest in the use of marine collagen for a host of human benefits.”
 
Overall, Croda’s Ms. Kelly said the industry has profited from a growing trend of active consumers who are looking to take control of their own health through preventative treatments. “Key themes for these consumers are convenience, clarity and quality,” she noted. “They want convenient products that are easy to use, in user-friendly, great-tasting forms.”
 
Of course, in a crowded marketplace, quality and confidence in products will continue to be paramount. Ms. Kelly said Croda’s PureMax guarantee assures quality sourcing, manufacturing and testing of all the company’s products. “We guarantee to use only fish oil that comes from the most responsibly managed and sustainable sources possible. Croda also uses a combination of advanced purification techniques like short path distillation, urea complexation, and super refining, which remove impurities, eliminate taste and odor and concentrate the beneficial omega 3 fatty acids.”
 
Eric Anderson, vice president of sales and marketing, Norway-based Aker BioMarine, said more consumers are beginning to realize not all omega 3s are the same, recognizing different sources of these fatty acids.
 
Krill represents a unique source with a nutritional profile distinct from traditional fish oil. Krill is a phospholipid-bound omega 3 source compared to fish oil that is triglyceride-bound. “Phospholipid omega 3s are more efficiently delivered to the cells than other sources,” Mr. Anderson explained. “The benefits of phosphatidylserine and astaxanthin are inherent to the product and the consumer is embracing that message.”
 
Clinical research of Aker’s Superba Krill Oil indicates various health benefits, including a reduction of visceral fat (fat around the organs) in obese humans through positive modulation of the endocannabinoid system. Another study showed positive benefits in children with attention deficit hyperactivity disorder (ADHD) and an ongoing North American study is evaluating effects on biomarkers of cardiovascular health.
 
While concerns regarding sustainability of krill have surfaced, Mr. Anderson claims: “if you look at the world’s commercial fisheries, krill is among the most sustainable and best managed fisheries on the face of the earth.”
 
“The krill industry recognizes that any growth has to be sustainable,” he continued. “It’s for that reason that Aker is taking the lead, sponsoring research and surveys to make sure that we have the best information available about the health of the species, so that we can unequivocally say this is a sustainable harvest.” (For more information on the krill market read “Krill: The Ocean’s Gold”.)
 
Sticking to Supplements
 
The fastest growing product category in the dietary supplement market has been what GOED’s Mr. Ismail called “triple strength” products, which deliver 900 mg of EPA and DHA per serving, compared to 300 mg from a standard fish oil capsule. 
 
Still, the majority of bulk marine oil sold in the U.S. is 30% natural fish oil, according to DSM’s Mr. Palmieri. “Only about 10% of the bulk oils sold in the U.S. are concentrates. These are oils with omega 3 concentrations of 40-95%,” he said, citing data from Frost and Sullivan. “Hence, competition in the 30% market is largely based on price. However, in the concentrates market, the quality of the oil (i.e., impurity levels) starts to become a key driver. Therefore, working with suppliers that can provide a reliable, traceable and quality product to ensure ‘peace of mind’ is critical for the success of a consumer product.”
 
Marc Vaugeois, vice president, Biodroga, Quebec, Canada, said he has noticed increased demand for blended products, such as fish oil with CoQ10, fish oil with krill oil and other formulas that offer differentiation in the marketplace. “I think the demand for these higher concentrations and blended formulas is coming from Baby Boomers who are now concerned about their health and have disposable income. They are looking and asking for high concentration, single dosage, fully tested and socially responsible products. And they are willing to pay a premium for a product that can meet their needs.”
 
Alongside higher concentration dietary supplements, EPAX’s Mr. Hjaltason noted the success of Lovaza, an FDA-approved prescription omega 3 fish oil, which has become a $1 billion-per year product. In fact, he said, “There are a number of omega 3 products going through clinical trials that will be launched as drugs in the coming years, basically in the cardiovascular area.” 
 
GOED’s Mr. Ismail agreed, saying several new entrants in this market are bringing generic versions of existing products, as well as new products with new drug indications. “This is a very high value market that is about to get much bigger.”
 
In the supplement realm, Mr. Hjaltason said the market continues to move toward more condition-specific health products, as new science supports efficacy for specific health concerns, as opposed to general well-being. Consumers are also demanding highly concentrated omega 3 products, he added. “Most of the concentrates made today are based on high vacuum molecular distillation, but this technology limits how high you can go in total amount of EPA and DHA. If you need products that are above 75% in EPA and DHA, you need different technology.”
 
Those technological options include urea precipitation, chromatography separation and super critical extraction, he noted. “We are seeing the industry investing heavily in this technology, which will lead to more availability of high EPA and DHA concentrates in the near future.”
 
Volkan Eren, director of operations, Enzymotec USA Inc., Morristown, NJ, a subsidiary of Israel-based Enzymotec Ltd., agreed the market for specialty products that offer unique and advanced solutions presents a valuable opportunity for high-tech companies that can deliver the “science, technology and proprietary solutions to consumers.”
 
A substantial amount of research with promising results has either been completed or is underway, driving the market forward, he added. “I believe over time the marine nutraceuticals market will be even more popular than today considering the amount of people who are turning to healthy lifestyles throughout the world.”
 
Functional Delivery
 
Manufacturers of functional foods and beverages still have some issues to address in order to sway consumers, according to Larry Kolb, president of U.S. operations, TSI Health Sciences, Missoula, MT. “Functional food has been a promising market for many years, but it’s never really managed to deliver on its promises. Technology has been the first challenge as fa as how to stabilize PUFA in a food matrix. Consumers very often do not get the message on why they should pay a premium for a functional food, omega 3-enriched product.”
 
Biodroga’s Mr. Vaugeois agreed, pointing out that dietary supplement manufacturers have been more interested in producing products with efficacious amounts of active compounds based on scientific evidence, “whereas the food and/beverage category input levels seem to be based solely on the possibility of marketing a product that contains the constituent.”
 
Technical advances in functional food and beverage formulations—which have been made over the past few years—come at a cost, added Dan Murray, vice president of business development, Xsto Solutions, LLC, Morristown, NJ. “If we can’t as an industry communicate the value of our products, then we can’t expect someone else to pay a premium for a value-added product.”
 
Clear and tasteless solutions continue to draw substantial interest, he added. “Marine oils that are highly susceptible to oxidation offer a challenge to shelf-life, especially when we target ambient shelf-life for non-refrigerated products.”
 
One company that has been active on this front is SoluBlend Technologies, Frankfort, IL. In simplistic terms, it has devised a way to take fat-soluble actives and put them into clear beverages without impacting taste, texture or appearance. So far it has been particularly successful with omega 3s. The primary advantages include solubility, stability, higher dosages, increased bioavailability and cost savings, especially when compared to other delivery systems for omega 3s.
 
With recent advancements in formulation, delivery technologies are becoming increasingly sophisticated to include microemulsions and near-nanoscale encapsulations, according to The Wright Group’s Mr. Wright. “This will enable omega 3 applications in clear beverages and other products where limitations have existed. Costs will still be an issue versus the relatively inexpensive and high-dose supplement forms.”
 
But DSM’s Mr. Palmieri said stable marine oil emulsions provide ease of use along with a cost savings to manufacturers of dairy products or other beverage type products. Croda’s Ms. Kelly agreed, predicting an increase in yogurts and milks fortified with marine products. “Croda’s new Omelife range is ideal for such food applications,” she noted.
 
According to Mr. Vaugeois, new technologies are also leading to better, more nutritious children’s health products. In the past, many gummies may have tasted good, but they also contained high amounts of sugar while delivering low amounts of omega 3s. “We are working with a Norwegian company called Ayanda, which has developed a new delivery system called Concordix that is sugar-free and contains a very high payload along with an increased bioavailability.”